A show cause notice has been served by the Government’s Department of Revenue Intelligence (DRI) to the India’s largest car importer, Hyundai Motor India Ltd (HMIL), on the basis that the Company has not properly declared the value of auto components imported.

The bone of contention between the DRI and HMIL is Rs 266 crore. On receiving such notice, the Korean carmaker has announced that they would take the legal help, and also refuted such allegations, stating they have all documents related to it, which would be put forth during the court proceedings.

They even claimed that they have filed each and every bill with the customs department, and there is no scope of censorship in that. The disputed amount forms the 2% of the total import value, which is approximately Rs 14,000 crore, in the last five years.

The Company has a 6.7 lakhs unit per annum capacity plant near Chennai, and also utilizes the Chennai port for both imports and exports. Many components used in the manufacturing of cars are imported from overseas by both HMIL and associate firm Mobis India.

HMIL is also one of the car makers, which enjoys ‘Accredited Client Program’ facility from the Government, in which it avail several benefits, like fast-tracking of imports at the holding area and with fewer checks, but if DRI allegations comes to be true, then the Company might lose ACP facility.